There is room for New Zealand Dollar (NZD) to edge lower, but any decline is likely part of a lower range of 0.5620/0.5650. In the longer run, downward pressure has increased; NZD could weaken to 0.5600 next, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Downward pressure has increased

24-HOUR VIEW: "When NZD was at 0.5665 in the early Asian session yesterday, we noted that 'the current price movements are likely part of a rangetrading phase'. We expected NZD to 'trade between 0.5640 and 0.5680'. NZD traded well within the range until the NY session, when it plummeted to a low of 0.5626. The decline has gained some momentum, albeit not a lot. Today, there is room for NZD to edge lower, but we view any decline as part of a lower range of 0.5620/0.5650. We do not expect the major support at 0.5600 to come into play."

1-3 WEEKS VIEW: "Tracking the decline in NZD that started last Friday, we indicated two days ago (05 Nov, spot at 0.5645) that 'downward pressure has increased, and NZD could weaken to 0.5600 next'. Although there has been no further increase in downward momentum, we maintain our view for now. Overall, only a breach of 0.5680 (‘strong resistance’ level was at 0.5705 yesterday) would indicate that the decline has stabilised."